That commitment means we're not in a position to commit to dealing with fiscal drag again this term,” she said. Willis has raised the income tax brackets and some tax credit thresholds by 11.5%, which will save the average household about $30 per week or $1,560 annually. New Zealand’s income tax brackets have only been adjusted five times since 1989, showing successive governments have knowingly relied on fiscal drag to bolster their revenues. Despite this, New Zealand’s personal income tax rate remains very low by international standards. Voters’ appetite for both relatively low taxes and high-quality public services could be one reason policymakers allow fiscal drag to continue.

Source: Stuff July 31, 2024 02:53 UTC